Intel Jumps 11%+ on Terafab Deal: Bull Case Builds for $100 Stock

Quick overview

Intel (INTC) stock closed at $58.95, up a strong 11.42% (or about $6) on the day, with heavy volume. It briefly hit a new 52-week high near $59.17 before pulling back slightly in after-hours trading.

Intel announced on Tuesday that it will assist the so-called Terafab project in “refactoring” the technology in a chip factory.

This phase of the development process contributes to chips being more robust or dependable.  The chipmaker’s shares increased by 4.2 percent to $53 in New York trading on Tuesday.

Musk’s ambitious plan to eventually produce his own chips for robotics, artificial intelligence, and space data centers is known as the Terafab project. The project intends to generate an enormous amount of computing power annually, roughly one terawatt of capacity.

Although Musk’s businesses have never produced chips, Tesla already designs its own. He now envisions doing that on a scale to compete with Taiwan Semiconductor Manufacturing.

Intel CEO Lip-Bu Tan stated, “Terafab represents a step change in how silicon logic, memory, and packaging will be built in the future.”

Intel is honored to collaborate closely with Elon on this extremely important project. “Terafab’s goal of producing 1 TW/year of compute to power future advances in AI and robotics will be accelerated by our ability to design, fabricate, and package ultra-high-performance chips at scale,” Intel added in its post. Musk stated in March.

The CEO spent a large portion of the previous year eliminating positions and other expenses. However, he also drew significant investments from Nvidia Corp. and the US government. and SoftBank Group Corp., which gave it a stronger foundation. Intel agreed last week to repurchase half of an Irish plant it had previously sold to Apollo Global Management for $14.2 billion. The action was interpreted as an indication of trust in the chipmaker’s operations.

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Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.

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